Auto Insurance In Virginia: What's The Law?

Unlike most other states, auto insurance is not strictly mandatory in Virginia. Drivers can choose to pay an uninsured motorist fee to the DMV instead. However, this fee does not provide any financial protection in the event of an accident. Therefore, it is highly recommended that drivers obtain at least the minimum required insurance coverage to protect themselves from financial risk.

Virginia's minimum insurance requirements

Virginia requires drivers to carry a minimum amount of car insurance. The minimum amount of Virginia auto insurance coverage is $25,000 per person for bodily injury, with a total maximum of $50,000 per incident. It also covers up to $20,000 for damage to another person's property. This type of coverage is called liability insurance. It will only cover the damages that you cause to another party if you are at fault for an accident.

Liability insurance typically includes two types of coverage: property damage and bodily injury. Property damage coverage safeguards your assets if you are found legally responsible for a covered accident. It covers certain damage you may cause to the property or vehicle of another party. Bodily injury coverage safeguards your assets if you are found legally responsible for an accident, including certain expenses associated with bodily harm sustained by the other parties.

Virginia is unique in that you can legally avoid obtaining any liability insurance if you pay the state's $500 uninsured motorist fee. However, this fee offers no insurance protection. The only benefit is that it allows you to drive on Virginia roads without being fined for failing to carry insurance. If you are at fault for an accident, you will be personally responsible for any damage to the person or property that results from your negligence.

In addition to liability insurance, Virginia requires a minimum of $25,000/$50,000 uninsured motorist bodily injury coverage and $20,000 uninsured motorist property damage coverage with a $200 deductible for hit-and-run accidents. This type of coverage protects you in the event of an accident where the other party is at fault and either doesn't carry insurance or is underinsured.

While not mandatory, the Virginia Bureau of Insurance recommends that drivers consider additional insurance coverage for further protection. Collision coverage can protect you financially if you damage your own vehicle, and medical expenses coverage can help pay for your medical bills if you are injured in an accident.

The benefits of purchasing auto insurance

Although auto insurance is not strictly mandatory in Virginia, drivers must obtain the state's minimum required auto insurance coverage or pay a $500 uninsured motorist fee. This minimum insurance coverage includes:

• $25,000 in coverage for bodily injury (per person)
• $50,000 in coverage for bodily injury (per accident)
• $20,000 in coverage for property damage

While purchasing auto insurance is not compulsory in Virginia, there are several benefits to doing so. Here are some advantages of buying auto insurance:

Peace of Mind

Auto insurance provides peace of mind by protecting you and your family against monetary losses in the event of an accident. Without insurance, you would be responsible for covering the costs of repairs, replacements, and medical bills out of pocket.

Coverage for Repairs and Replacements

Excellent auto insurance can help cover the costs of repairs and replacements to your vehicle. A good policy can also include towing services, so you don't have to worry about managing those expenses on your own.

Legal Protection

Auto insurance can protect you from lawsuits and legal costs if you cause significant damage to someone else's property. It also covers legal fees if you are sued over an accident.

Coverage for Medical Expenses

In the event of an accident, auto insurance can help cover medical expenses for you and your passengers. This includes emergency room fees, rehabilitation costs, and lost income related to the accident.

Protection Against Uninsured Motorists

Uninsured motorist coverage offers financial protection if you are injured in an accident caused by an uninsured or underinsured driver. This type of coverage is especially important, given that 10.1% of Virginia drivers lack insurance coverage.

Convenience of Online Purchase

Buying auto insurance online offers several benefits, including the ability to compare multiple policies, find the best deal, and obtain instant coverage with minimal paperwork. You can also easily check the credibility of the insurer through social media reviews.

The consequences of driving without insurance

In Virginia, driving without insurance can have serious consequences. While the state does not require drivers to carry auto insurance, they must either purchase the minimum required insurance coverage or pay an uninsured motorist fee of $500. Driving without insurance or proof of financial responsibility can result in severe penalties.

If caught driving without insurance in Virginia, you may be convicted of a Class 3 misdemeanor, which can result in a $600 non-compliance fee, suspension of your driver's license, vehicle registration, and license plates, and a reinstatement fee of up to $145. Your insurer will also need to file an SR-22 form, which can lead to higher insurance rates for three years.

If you are involved in a vehicle collision without insurance, the claims process can become complex, and you will be held personally responsible for all property damage, injuries, and other accident-related expenses. This can include the other person's vehicle replacement or repair bills, hospital bills, treatment costs, pain and suffering, and your own accident-related costs. The financial burden of an accident without insurance can be significant, potentially costing thousands of dollars.

To avoid these consequences, it is essential to maintain continuous insurance coverage, temporarily deactivate your license plate, or pay the uninsured registration charge if you choose to drive without insurance in Virginia.

The uninsured motorist fee

Unlike most other states, Virginia does not require drivers to carry auto insurance. However, drivers must either obtain the minimum required auto insurance coverage or pay an uninsured motorist fee.

Who Should Pay the Uninsured Motorist Fee?

Changes to the Uninsured Motorist Fee

As of July 1, 2024, the state of Virginia will no longer allow motorists to register their vehicles without insurance by paying the uninsured motorist fee. All motorists in Virginia must carry auto insurance as of this date.

Recommended auto insurance coverage

While auto insurance is not strictly mandatory in Virginia, it is highly recommended that drivers obtain at least the minimum required insurance coverage. This includes:

• $25,000 in coverage for bodily injury (per person)
• $50,000 in coverage for bodily injury (per accident)
• $20,000 in coverage for property damage

Additionally, Virginia requires drivers to have uninsured motorist coverage, which includes:

• $25,000/$50,000 uninsured motorist bodily injury
• $20,000 uninsured motorist property damage with a $200 deductible for hit-and-run accidents

While these are the minimum requirements, it is important to consider additional coverage to protect yourself financially in the event of an accident. Here are some recommended auto insurance coverages to consider:

• Collision Coverage: This will cover the cost of repairs or replacement of your vehicle if it is damaged in a collision with another vehicle or object. This is subject to a deductible, which is the amount you must pay before the insurance company covers the rest.
• Comprehensive Coverage: This covers damage to your vehicle from non-collision incidents such as theft, fire, vandalism, glass breakage, and contact with animals. Like collision coverage, this is also subject to a deductible.
• Medical Expense Coverage: This will cover medical bills for you or others involved in an accident, regardless of who is at fault. It can include everything from emergency room fees to rehabilitation costs.
• Income Loss Benefits: This coverage provides compensation for lost income due to injuries sustained in an accident, up to a certain limit.
• Uninsured/Underinsured Motorist Coverage: This protects you in case another driver is at fault and does not have sufficient insurance coverage. It includes both bodily injury and property damage protection.
• Personal Injury Protection: While not required in Virginia, this coverage can provide additional protection for medical expenses and lost wages if you are injured in an accident.
• Roadside Assistance: This can be helpful if you need services like towing, fuel delivery, or jump-starting your vehicle.
• Accident Forgiveness: This optional coverage ensures that your insurance rates will not increase after your first at-fault accident.
• Rental Car Coverage: If your vehicle is unusable due to a covered loss, this coverage will help pay for a rental car or other transportation expenses.

When considering the recommended auto insurance coverages, it is important to review your individual circumstances and assess the level of protection you need. Additionally, keep in mind that Virginia allows insurers to consider your credit rating when determining your premium. Therefore, maintaining a good credit score can help keep your insurance costs lower.

Frequently asked questions